Square completes Eidos swoop

Eidos will be under the formal control of Square Enix within weeks but jobs look safe, with the business running as an independent unit.

MCV can reveal that a board meeting was held this week which took the deal a significant step closer to completion. There are no problems on the horizon, little chance of gazumping from another bidder and, ultimately, the last bastion of British games publishing is turning Japanese.

In the meantime, sources at the Games Developer Conference in San Francisco have confirmed to MCV that Square has no intention of meddling with Eidos operations, which will run as normal from Wimbledon, West London for the forseable future.

It was officially announced earlier this year that Eidos had reached an agreement with Square which will result in the firm's complete share capital being purchased in early May. Eidos shares will be suspended on or before April 21st. The deal is estimated to worth 84 million

Square Enix believes that the acquisition represents a highly attractive opportunity for the Square Enix group to create further value” for its shareholders.

The deal will see the likes of Tomb Raider, Just Cause and Hitman, three heavily westernised franchises, join Square Enix's Japanese mega-properties such as Final Fantasy and Dragon Quest.

Square Enix president Yoichi Wada said of the move: Eidos is a talented developer and publisher of interactive entertainment products with a broad portfolio of highly successful mass market franchises, led by Tomb Raider, one of the most successful videogame franchises of all time.

Eidos maintains a strong reputation for high quality development and proven expertise in creating characters and storylines that appeal to consumers. Eidos' products are highly complementary to our business and will accelerate our aggressive expansion into Western markets. We believe that wide range of both companies' quality products encompassing major genres will enable us to meet diversified customers' expectations upon a global basis.”

Significantly, current Eidos shareholder Warner has has thrown its weight behind the Square Enix.